Entries by Donna Klingenberg

Common Misconceptions Many Private Equity Investors Face

By Ellie Pigott Private Equity (PE) investment has long been considered a lucrative yet mysterious realm of the financial world. As opportunities in this sector continue to grow, so do the misconceptions that surround it. In this blog post, we will debunk some prevalent myths surrounding PE investments, shedding light on the realities that private […]

Common Private Equity Misconceptions Many Business Owners Face

By Ellie Pigott Selling your business can provide you with financial flexibility, free up time from day-to-day responsibilities, allow for retirement or lifestyle changes and much more. However, many businesses owners are hesitant due to common private equity misconceptions. Some of these PE misconceptions and fears include incoming layoffs, “stripping and flipping”, strategic misalignments, loss […]

TroutRoutes Acquired

TroutRoutes Acquired by onX onX, a pioneer in outdoor digital navigation, today announces its acquisition of Minneapolis-based TroutRoutes, the industry’s leading mapping resource for fly fishing enthusiasts. TroutRoutes is part of Wayzata-based Traction Capital’s portfolio of companies. By bringing TroutRoutes into its portfolio, onX gains momentum as it enters a new market this spring with […]

Common VC Misconceptions Many Investors Face

By Ellie Pigott Investing in a Venture Capital fund can be a great way for investors to diversify wealth beyond traditional means like stocks and bonds. However, many shy away from this potentially lucrative avenue because of uncertainties and common VC misconceptions surrounding returns, success rates, involvement and theses among funds. In this blog we’ll […]

Common VC Misconceptions Many Founders Face

By Ellie Pigott Venture Capital (VC) can be a game-changer for startups, providing essential capital and strategic guidance to fuel growth. However, amidst the promises and potential benefits, founders often grapple with misconceptions that can shape their perception of engaging with VC firms. In this blog, we’ll delve into three common misconceptions that frequently surface […]

Nu-Star

Traction Capital Acquires Minnesota Manufacturing Company Nu-Star (PowerPusher®)   Traction Capital is proud to announce its acquisition of Nu-Star, a well-established manufacturing company with a rich history dating back to 1959. Nu-Star specializes in material handling, with proprietary Tuggers and Pushers called PowerPushers® that are battery powered and designed to move almost any rolling load […]

FAQs of First Time Private Equity Investors

By Cooper Eral Private Equity (PE) is a complex and intriguing realm of investment that often raises many questions for those considering it. As you contemplate the prospect of investing in private equity, you’re likely to encounter a myriad of questions that delve into the intricacies of how PE firms operate, generate returns, and conduct […]

AI Insights Issue #2

By Chris Carey Welcome to the second edition of Traction Capital’s AI Insights! We are thrilled to continue our exploration of the transformative power of Artificial Intelligence (AI) in the world of entrepreneurship. “There are decades where nothing happens, and there are weeks where decades happen.”  In this edition, we present several compelling articles that […]

Kwikly Named to the Inc. 5000 List

Every year Inc. releases a list of the Top 5000 Fastest Growing Companies in the U.S. We are pleased to congratulate Traction Capital portfolio company, Kwikly, for making the list for the second year in a row! This year Kwikly was ranked #169, up from #491 last year. Kwikly was the first investment in our fund back in 2021 […]

Demonstrating Traction: Taking Your Pitch Deck to the Next Level

By Cooper Eral For startups seeking funding, demonstrating traction is an essential factor that investors look for. Traction proves that your business idea is gaining momentum, attracting customers, and holding growth potential. Whether you are a pre-revenue or post-revenue startup, effectively conveying your traction can significantly increase your chances of securing funding. This blog post […]

Long Term Effects of SVB Crash in Venture Capital

By Ellie Pigott In the fast-paced and ever-evolving world of venture capital (VC), any calculated risks can disrupt the carefully cultivated ecosystem. One such risk caused a catastrophic event that has sent shockwaves through the VC community, the crash of SVB (Silicon Valley Bank), a prominent financial institution that has been instrumental in financing countless […]

Exploring the Power of AI for Entrepreneurs

By Chris Carey Welcome to Traction Capital’s AI Insights! At Traction Capital, we are committed to supporting startups by providing them with valuable resources and industry trends that can drive their success. Artificial Intelligence (AI) has become an integral part of the business landscape, revolutionizing various sectors and opening up countless opportunities for innovation and […]

Prime Party

E-commerce party supply company, Prime Party, has received a $500,000 investment from Traction Capital. The Washington-based company is making themed parties easier than ever before. Traction Capital looks forward to working closely with Prime Party as they roll out new brands and scale their business. Prime Party is a direct to consumer, TV show themed […]

The Importance of Product-Market Fit

By Ellie Pigott Startups face many challenges in their journey to success, but perhaps the most critical is finding product-market fit. This is the stage where a startup has developed a product or service that meets the needs of a specific group of people, otherwise known as their target market. When achieved, the startup has […]

Impacks

Traction Capital has invested $500,000 in a St. Cloud based startup making school supplies more convenient and accessible. Impacks provides families with pre-packed school supply kits, tailored specifically to their school and grade. The Minneapolis venture capital firm looks forward to helping Impacks expand their customer base and give back to their community. Impacks is […]

Clean Waste Systems

Clean Waste Systems (“CWS”) has received a $500,000 investment from Traction Capital. The Maple Lake, MN based company manufactures and sells equipment utilizing its own proprietary, patented ozone technology for sterilizing infectious medical waste. The process uses significantly less energy and water to operate and produces a fraction of the greenhouse gas emissions as traditional […]

Cash Flow Management for Small Businesses

By Carrie Emslander What is cash flow? Cash flow is a crucial aspect of any business, as it refers to the inflow and outflow of money. It’s the lifeblood of an organization and, if managed properly, can help ensure its long-term success. In this blog, we’ll take a closer look at what cash flow is, […]

Scribe

B2B marketing technology company, Scribe, has received a $400,000 investment from Traction Capital. The Minnesota based company provides businesses with handwritten notes scribed by robots to be mailed to customers. Traction Capital looks forward to working with the Scribe team as they continue to grow. Scribe provides businesses with personalized, handwritten mailers for existing clients […]

Top 15 VC (Venture Capital) Terms Every Founder Needs to Know

By Ellie Pigott 1. Liquidation Preference Liquidation Preference refers to the order of which the investors in the company get paid in the event the company goes under. Typically the order is as follows; senior debt (long term loans- commercial banks, etc.), subordinated debt (seed funds, angel investor, venture capitalist and friends/family), preferred stock (investors […]

Top 10 VC (Venture Capital) Terms Every Investor Needs to Know

By Ellie Pigott 1.  Limited Partner (LP) Limited Partner (otherwise referred to as an LP), is the term for an investor who is a member of the fund. This means they have agreed to the terms of the fund, and thus are investing their money but do not have control over the management of the […]

Delve Health

 Delve Health on Track to Transform Clinical Trials Worldwide Traction Capital has invested in an on-going partnership with a local Minnesota MedTech company with experience in clinical studies around the world. Delve Health reduces clinical trial costs and accelerated drug development by bringing the trials to patient homes, enabling more accurate data collection, and processing […]

How to Grow Your Startup During a Labor Shortage

By Ellie Pigott In the midst of a labor shortage, seeking the right talent for your startup may seem intimidating. But you might be in luck. People are leaving their jobs because they want something new and different, and working for a startup that shares their values could be a strong point of attraction. Attracting […]

5 Tips to Prepare Your Startup for a Recession

By Ellie Pigott While a recession looms overhead, many entrepreneurs fear what’s in store for their startups and small businesses. The Oxford Dictionary defines a recession as “a period of temporary economic decline during which trade and industrial activity are reduced” and in the last 160 years, recessions have occurred roughly every 4 and a […]

TroutRoutes

Traction Capital has invested in a Minnesota Technology company revolutionizing the way people fly fish. The company provides anglers with the knowledge and technology to optimize their trout fishing experience. The Minneapolis venture capital firm looks forward to helping TroutRoutes grow their platform as they tackle the U.S market. TroutRoutes is revolutionizing a sport that […]

5 Types of Alternative Investing

By Ellie Pigott For many, when they hear the word investing, they think of the stock market, retirement funds or maybe even crypto. But the possibilities don’t stop there. For those whose lifestyle can allow a less liquid investment vehicle, alternative investing is a great option. There are several vehicles to choose from including private […]

Saltbox

B2B sales company, Saltbox, has received a $500,000 investment from Traction Capital to finish out their $675,000 raise. The Minneapolis-based company is revolutionizing the way B2B organizations improve the buying experience of their customers. As Saltbox continues to grow, Traction Capital looks forward to working closely with their team. Saltbox is a Salesforce startup that […]

Startup Valuation Trends 2022 [what founders need to know]

By Ellie Pigott Over the last two years we’ve watched as Covid has turned our world upside down. Virtually every industry was affected, and Venture Capital was not an exception. In an attempt to keep the economy moving while the country was at a standstill, the Federal Reserve pushed more money into the U.S. economy […]

Froogle

Traction Capital has invested $500,000 in Froogle, a Software company that focuses on the hospitality industry. The company utilizes its location-based technology and online ordering software to help small and medium sized businesses draw in new consumers while also saving money and manpower. The Minneapolis venture capital firm is excited to be a key partner […]

ControlBright Names Barbara Stinnett President

After raising $500,000 in capital in recent months, ControlBright is set for growth and has chosen veteran technology executive and private equity trailblazer Barbara Stinnett to lead the charge. Stinnett’s role as President began on 3/15/2022. Barbara Stinnett is a highly respected industry executive who brings a wealth of global leadership experience in high-tech organizations. […]

A Quick Recap on the 2021 Merger & Acquisition Market

By Cory Kaisersatt As many may know, the merger and acquisition market was K.O.’d in 2020 due to the COVID-19 outbreak and the economic uncertainty of the year that followed. In 2021, however, M&A made a Robert Downey Jr. circa mid 2000’s level comeback. Last year’s M&A activity hit record setting numbers in the Q4 […]

ControlBright

Traction Capital has invested $500,000 in a Duluth, MN company that is innovating within the industrial lighting and controls industry. The Minneapolis venture capital firm is excited to take the lead on ControlBright‘s first round of funding.   ControlBright is a hardware/software solution that enables remote access to a building’s lighting, HVAC, alarm, and automation […]

GoRout

Traction Capital has invested $500,000 in a Rochester, MN company that is revolutionizing the way football coaches around the country – from youth to professional – are running practices. The Minneapolis venture capital firm is excited to take the lead on GoRout’s seed round of funding geared towards growing the company. GoRout is a high-tech […]

On-Demand Staffing

In 2020, the gig economy skyrocketed.  Earnings typically increased over 50% for delivery businesses related to fast food, grocery, and physical products.

Kwikly

Traction Capital is excited to announce its first investment of Focus Fund I in Kwikly.

Business Wire

Traction Capital, a Minneapolis based hybrid private equity and venture capital firm, announced the launch of the first of its Focus Funds dedicated to making investments in, or acquisitions of, early stage and lower middle market companies that are stuck in the “capital gap.”

Star Tribune

Many emerging businesses have good ideas, products or services and demonstrate revenue growth but lack the money and mentorship to take the next steps in a company’s life cycle.